Which of the following would be considered an operating lease? Assume all leases are noncancelable.

a) Lessee rents equipment for 5 years. The equipment has a useful life of 8 years.

b) Lessee rents equipment with a bargain purchase option.

c) Lessee rents equipment and the equipment title does transfer over.

d) Lessee rents equipment in which the present value of the minimum lease payments are $40,000 and the fair value of the equipment is $42,000.